KUALA LUMPUR (Dec 13): The FBM KLCI rose 0.62% in early trade this morning in line with the rally at regional markets .

At 9.05am, the FBM KLCI rose 10.43 points to 1,673.70.

The gainers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Hong Leong Bank Bhd, Khind Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Yinson Holdings Bhd and Magni-Tech Industries Bhd.

Asian shares and the pound moved higher on Thursday as investors breathed a sigh of relief after British Prime Minister Theresa May survived a no-confidence vote, and as China appeared to be taking more steps to meet U.S. demands to open its markets, according to Reuters.

Sterling rallied from a 20-month low after the vote, and was holding onto gains early in the Asian trading day, trading at $1.2629, it said.

Hong Leong IB Research in a traders’ brief said despite China agreeing on the reduction of auto tariffs, it remains unknown of when the change would goes into effect.

“Hence, the volatile movement may persist amid the ongoing trade tensions between the US and China. Also, with President Trump threatened to shut down government if Congress doesn’t fund his proposed Mexico wall would pose further knee jerk reaction towards stock markets.

“On the local bourse, we expect the bearish tone may extend this week as news headlines are still in the negative mood.

“Hence the downside risk outweighs the upside reward at this juncture. With that, traders may lookout for opportunities within the defensive stocks with high potential dividend yield to be paid out in the future,” it said.